Roth IRA
Hi Terry!
Where and how is the best way to set up a Roth IRA for my kids ages 21,19,17 and does the 17yr old have to be 18? I have a Schwab account and bank with Chase.
Thanks!
Terry Says
You CANT set up an IRA for anyone who doesn’t have EARNED income.
Since they are mostly past college aid, it doesn’t make sense to set up a 529 college savings plan. You should have done that years ago, to get tax-free growth.
BUT, you can make payments directly TO THE COLLEGE — to help with tuition. That won’t count against the family in the financial aid formula. And it will certainly help them — whether they go to college or a trade school.
PS. When they DO start to work, you could make an agreement to “match” their contributions to an Individual Retirement Account, creating an incentive to start saving early.
